Some Companies Hesitate to Outsource

By Chris Preimesberger  |  Posted 2007-01-28 Print this article Print

An analyst explains why some companies do not want to outsource their storage.

Hiring someone outside the company to store, manage and protect all a companys data is a gutsy thing to do, for any storage executive or administrator. And this decision usually is not made in a vacuum. Virtually all companies who outsource their storage apparatus must have either the CEO, president, or a senior vice president sign off on it. "There are two major reasons why not all companies are doing this," said Brian Babineau, a storage analyst at Enterprise Strategy Group, in Milford, Mass.
"First, there is a trust factor. Critical data often includes intellectual property, trade secrets and other information. If a primary copy of data is deleted and the service provider screws up, then there will be a big issue."
Read more here about the Baltimore Ravens data outsourcing strategy. Organizations would rather have their own employees responsible for protecting this information as opposed to relying on a third-party service provider who has some level of guarantee (usually a service-level agreement), Babineau said. "No matter what the reparations are for not achieving the service levels, if data is not backed up and a primary copy is deleted, there are far-reaching implications," Babineau said. Reason No. 2 is security, Babineau said. There are several international and domestic information privacy regulations that are in place and many more that are being considered. "Some organizations, like banks, hospitals, [and] retailers that create an abundance of personal and sensitive information, cannot afford for this information to be compromised by an external service provider. The risk of privacy violations far outweigh the cost benefits of outsourcing," Babineau said. Check out eWEEK.coms for the latest news, reviews and analysis on enterprise and small business storage hardware and software.
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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